Chapter 3332: CAREER COLLEGES AND SCHOOLS

(A)
"Agent" means any individual
whose primary duties, performed while on or off school premises, include
distribution of literature or information on behalf of a person offering a
program, and the solicitation of prospective students in Ohio to enroll for a
fee in a program.

(B)
"Certificate
of registration" means a certificate issued by the state board of career
colleges and schools to the owner or operator of a for profit or nonprofit
private career school located within or without the state of Ohio, that permits
the school to solicit students and offer and maintain a program in Ohio.

(C)
"Program" means a course of
study, whether offered in a specific place, by correspondence using the mails,
or by any other means of communication, designed to prepare students for
potential employment in a recognized vocation, occupation, or profession at the
certificate, diploma, or degree level.

(D)
"Program authorization" means written
notification by the board to a private career school granting approval for
offering programs and awarding certificates, diplomas, or degrees.

(E)
"Private career school" or "school" means
a person possessing a certificate of registration and one or more program
authorizations.

This chapter does not apply to the following categories of
courses, schools, or colleges:

(A)
Tuition-free courses or schools conducted by employers exclusively for their
own employees;

(B)
Nonprofit
institutions with certificates of authorization issued pursuant to section
1713.02 of the Revised Code or
that are nonprofit institutions exempted from the requirement to obtain a
certificate by division (E) of that section;

(C)
Schools, colleges, technical colleges, or
universities established by law or chartered by the Ohio board of regents;

(D)
Courses of instruction
required by law to be approved or licensed by a state board or agency other
than the state board of career colleges and schools, except that a school so
approved or licensed may apply to the state board of career colleges and
schools for a certificate of registration to be issued in accordance with this
chapter;

(E)
Schools for which
minimum standards are prescribed by the state board of education pursuant to
division (D) of section
3301.07 of the Revised Code;

(F)
Courses of instruction
conducted by a public school district or a combination of public school
districts;

There is hereby created the state board of career colleges and
schools to consist of the state superintendent of public instruction or an
assistant superintendent designated by the superintendent, the chancellor of
the Ohio board of regents or a vice chancellor designated by the chancellor,
and six members appointed by the governor, with the advice and consent of the
senate. Members' terms of office shall be for five years, commencing on the
twenty-first day of November and ending on the twentieth day of November. Each
member shall hold office from the date of appointment until the end of the term
for which the member was appointed. Three of the members appointed by the
governor shall have been engaged for a period of not less than five years
immediately preceding appointment in an executive or managerial position in a
private, trade, technical, or other school subject to this chapter. One member
appointed by the governor shall be a representative of students and shall have
graduated with an associate or baccalaureate degree, within five years prior to
appointment, from a school subject to this chapter. Two members appointed by
the governor shall be representatives of the general public and shall have had
no affiliation with, or direct or indirect interest in, schools subject to this
chapter for at least two years prior to appointment. In selecting the
representatives of the general public, the governor shall make an effort to
find individuals with background or experience in the regulation of commerce,
business, or education. The two members of the board who are representatives of
the general public shall not be affiliated in any way with or have any direct
or indirect interest in any schools subject to this chapter during their terms.
Except for enrollment in a school subject to this chapter, the member
representing students shall have had no affiliation in any way with, or have
any direct or indirect interest in any school subject to this chapter for at
least two years prior to appointment or during the member's term. Any vacancy
shall be filled in the manner provided for original appointment. Any member
appointed to fill a vacancy occurring prior to the expiration of the term for
which the member's predecessor was appointed shall hold office for the
remainder of such term. Any appointed member shall continue in office
subsequent to the expiration date of the member's term until the member's
successor takes office, or until a period of sixty days has elapsed, whichever
occurs first.

Members of the board have full voting rights, except for the
member representing students who shall be a nonvoting member. Each member of
the board appointed by the governor shall be compensated at the rate
established pursuant to division (J) of section
124.15 of the Revised Code, but
shall not receive step advancements, for those days the member is engaged in
the discharge of official duties. In addition, members appointed by the
governor may be compensated for the expenses necessarily incurred in the
attendance at meetings or in performing other services for the board. The
chairperson of the board shall annually be elected or determined as follows:

(A)
If both members of the board
representing the general public have served on the board for at least one year,
the members shall elect one of these two members as chairperson. If one of
these members declines to be elected or serve, the other member representing
the general public shall be chairperson. If both members representing the
general public decline to be elected or serve, division (C) of this section
shall apply.

(B)
If only one
member of the board representing the general public has served on the board for
at least one year, this member shall be chairperson. If this member declines to
serve, division (C) of this section shall apply.

(C)
If neither member of the board
representing the general public has served on the board for at least one year
or if this division applies pursuant to division (A) or (B) of this section,
the members of the board shall elect a chairperson from among any of the voting
members of the board who have served on the board for at least one year.

(F)
Issue program authorization pursuant to
divisions (B) and (C) of section
3332.05 of the Revised Code;

(G)
Suspend or revoke program
authorization for schools pursuant to sections
3332.09 and
3332.091 of the Revised Code;

(H)
Establish minimum standards,
including but not necessarily limited to a code of ethics, for agents employed
by schools registered under this chapter to reasonably ensure that such agents
provide adequate, ethical, and accurate information to prospective students;

(1)
Adopt rules requiring all schools to provide all applicant students, prior to
their signing enrollment agreements, written information concerning the
school's graduation and placement rates for each of the preceding three years
and any other information the board deems pertinent.

(2)
Adopt rules requiring all schools to
provide any student or applicant student, prior to the signing of any financial
aid, grant, or loan application, written information concerning the obligations
of a student obtaining such financial aid, grant, or loan.

(3)
Upon request, a school shall furnish the
board with a copy of all information required by this division. The board shall
monitor schools to ensure their compliance with this division.

(M)
Adopt a rule requiring all
schools to include, in the enrollment agreement, notice that any problems the
student is having with the school, or complaints the student has about the
school, may be directed to the board, which notice shall include the telephone
number of the executive director of the board;

(N)
Report annually to the governor and the
general assembly on the activities of the board and private career schools, and
make legislative recommendations when necessary to enable the board to better
serve the student population and the schools registered under this chapter;

(O)
Adopt a rule requiring a
uniform tuition refund policy for all schools subject to this chapter. In
adopting the rule, the board shall consider the tuition refund policies
effectuated by state-supported colleges and universities. Each school subject
to this chapter shall furnish to each prospective student, prior to the signing
of an enrollment agreement, a copy of the tuition refund policy.

(P)
Adopt a rule establishing minimum
standards for all faculty and instructional staff in all instructional programs
at a school. In the case of full-time faculty members employed for degree
programs, such standards shall include all of the following:

(1)
A prohibition against employing on or
after July 1, 1993, any new full-time faculty member to teach the general study
portion of any degree program, unless the person holds a master's degree in the
subject matter discipline or holds a master's degree in education with
proficiency in the subject matter discipline demonstrated in accordance with
the standards adopted by the board.

(2)
Except as provided under the standards
adopted pursuant to division (P)(3) of this section, a prohibition against
employing or reemploying on or after July 1, 1998, any full-time faculty member
to teach the general study portion of any degree program, unless the person
holds a master's degree in the subject matter discipline or holds a master's
degree in education with proficiency in the subject matter discipline
demonstrated in accordance with the standards adopted by the board.

(3)
Standards under which the board, upon
written request submitted to the board prior to July 1, 1994, by any school,
may exempt the school from the prohibition adopted pursuant to division (P)(2)
of this section with regard to any individual full-time faculty member employed
by the school who has demonstrated outstanding teaching performance in the
general study portion of any degree program at the school for a period of at
least six years prior to July 1, 1993.

(4)
Definitions of "full-time faculty
member," "new faculty member," and any other term the board considers necessary
to define.

(Q)
Adopt a
rule prohibiting a school or branch campus thereof from claiming accreditation
from an accrediting agency in any of its advertising, recruiting, or
promotional materials unless the agency is recognized as an accrediting agency
by the United States department of education.

The state board of career colleges and schools may appoint an
executive director and such other staff as may be required for the performance
of the board's duties and provide necessary facilities. In selecting an
executive director, the board shall appoint an individual with a background or
experience in the regulation of commerce, business, or education. The board may
also arrange for services and facilities to be provided by the state board of
education and the Ohio board of regents. All receipts of the board shall be
deposited in the state treasury to the credit of the occupational licensing and
regulatory fund.

(A)
The state board of career colleges and
schools shall issue a certificate of registration to an applicant of good
reputation seeking to offer one or more programs upon receipt of the fee
established in accordance with section
3332.07 of the Revised Code and
upon determining the applicant has the facilities, resources, and faculty to
provide students with the kind of instruction that it proposes to offer and
meets the minimum standards of the board. A certificate of registration shall
be granted or denied within one hundred twenty days of the receipt of the
application therefor by the board. A person shall obtain a separate certificate
for each location at which the person offers programs. The first certificate of
registration issued on or after June 29, 1999, for each new location is valid
for one year, unless earlier revoked for cause by the board under section
3332.09 of the Revised Code. Any
other certificate of registration is valid for two years, unless earlier
revoked for cause by the board under that section.

(B)
The board shall issue program
authorization for an associate degree, certificate, or diploma program to an
applicant holding a certificate of registration issued pursuant to division (A)
of this section upon receipt of the fee established in accordance with section
3332.07 of the Revised Code and
upon determining the applicant has the facilities, resources, and faculty to
provide students the kind of program it proposes to offer and meets the minimum
standards of the state board. Any program authorization issued by the board
under this division is valid only for the specified program at the location for
which it is issued and does not cover any other program offered at the school
or at other schools operated by the owner. Program authorization is valid for
the period of time specified by the board, unless earlier suspended or revoked
for cause by the board under section
3332.09 of the Revised Code.

(1)
The state board shall accept and review
applications for program authorization for baccalaureate, master's, and
doctoral degree programs only from the following:

(a)
Any school holding a certificate of
registration issued by the board that has held such certificate for the ten
previous consecutive years;

(b)
Any school holding a certificate of registration issued by the board that also
holds an equivalent certificate issued by another state and has held the
equivalent certificate for the ten previous consecutive years.

(2)
After review the board shall
refer any application it finds valid to the Ohio board of regents for approval.
The board of regents shall review, and approve or disapprove, such degree
programs and if so approved, issue certificates of authorization to such
schools to offer such degree programs pursuant to Chapter 1713. of the Revised
Code. The board of regents shall notify the state board of career colleges and
schools of each school registered with the state board that receives a
certificate of authorization and the approval to offer any degree program. Upon
receipt of such notification and the fee established in accordance with section
3332.07 of the Revised Code, the
state board shall review, and may issue program authorization to offer, such a
degree program. Any program authorization issued by the board under this
division is valid only for the specified program at the location for which it
is issued and does not cover any other program offered at the school or at
other schools operated by the owner. Program authorization is valid for the
period of time specified by the board, unless earlier suspended or revoked for
cause by the board under section
3332.09 of the Revised Code. The
state board shall not issue such program authorization unless the degree
program has been approved by the board of regents.

(D)
The board may cause an investigation to
be made into the correctness of the information submitted in any application
received under this section. If the board believes that false, misleading, or
incomplete information has been submitted to it in connection with any
application, the board shall conduct a hearing on the matter pursuant to
Chapter 119. of the Revised Code, and may withhold a certificate of
registration or program authorization upon finding that the applicant has
failed to meet the standards for such certificate or program authorization or
has submitted false, misleading, or incomplete information to the board.
Application for a certificate of registration or program authorization shall be
made in writing to the board on forms furnished by the board. A certificate of
registration or program authorization is not transferable and shall be
prominently displayed on the premises of an institution. The board shall assign
registration numbers to all schools registered with it. Schools shall display
their registration numbers on all school publications and on all advertisements
bearing the name of the school. Notwithstanding the requirements of this
section for issuance of certificates of registration and program authorization,
the board may, in accordance with rules adopted by it, grant certificates of
registration and program authorization to schools, colleges, institutes, or
universities that have been approved by the state department of education
pursuant to the "Act of March 3, 1966," 80 Stat. 20,
38 U.S.C.A.
1771.

The state board of career colleges and schools shall direct
that a written survey be obtained by schools subject to this chapter, which
shall be used to solicit comments from students enrolled at such schools. The
board shall establish the guidelines for the survey by rule. The survey shall
be designed to determine student satisfaction with the quality of instruction,
facilities, school personnel, and business operations, including recruitment
and recruitment agents. The board shall adopt rules for the administration of
surveys and shall include provisions to ensure student anonymity. Surveys shall
be administered prior to the end of each school year. Completed surveys shall
be collected by the holder of the certificate of registration or the director
or administrator of the school and shall be compiled by the school. Each school
shall retain the surveys and the compiled results on file for at least three
years and shall make them available to the state board for examination upon
request. The holder of a certificate of registration shall be responsible for
ensuring that completed surveys are in no way altered.

(1)
No program shall be established, offered,
or given for a charge, fee, or other contribution; no certificate, diploma,
degree, or other written evidence of proficiency or achievement shall be
offered whether in a specified place, by correspondence, or any other means of
communication, or awarded; and no student enrollment in such program shall be
solicited through advertising, agents, mail circulars, or other means, until
the person planning to offer or offering such program, certificate, diploma, or
degree has obtained a certificate of registration and appropriate program
authorization in accordance with section
3332.05 of the Revised Code. No
school shall offer a baccalaureate, master's, or doctoral degree program unless
it has received a certificate of authorization from the Ohio board of regents
and program authorization from the state board of career colleges and schools.

(2)
No institution receiving a
certificate of registration after July 28, 1989, shall call itself a
"university" unless it meets all of the following conditions:

(b)
It
calls itself a "university" in that other state, as permitted under the terms
of the other state's certificate;

(c)
It has been issued degree program
authorization under division (C) of section
3332.05 of the Revised Code.

(B)
The
board shall petition the court of common pleas of the county in which a person
or agent, as defined in section
3332.01 of the Revised Code,
offers one or more programs subject to this chapter or advertises for the
offering of such programs without a certificate of registration and program
authorization, for an order enjoining such offering or advertising. The court
may grant such injunctive relief upon a showing that the respondent named in
the petition is offering or advertising one or more programs without a
certificate of registration and program authorization.

(A)
Each application for issuance and renewal
of a certificate of registration, for the issuance and renewal of program
authorization, for issuance and renewal of agent's permits, and for any other
service specified by the state board of career colleges and schools shall be
accompanied by the required fee. Fees submitted under this section are not
returnable even if approval or renewal is denied.

(B)
Fee schedules for the issuance and
renewal of certificates of registration, for the issuance and renewal of
program authorization, for issuance and renewal of agent's permits, and for any
other service specified by the board shall be established by rule adopted by
the state board. The fee for a one-year certificate of registration shall be
one-half the fee for a two-year certificate.

(C)
If in any fiscal year the amount received
in fees under this section does not equal or exceed fifty per cent of board
expenditures for the fiscal year, the board shall increase fees for the ensuing
fiscal year by an amount estimated to be sufficient to produce revenues equal
to fifty per cent of estimated expenditures for that ensuing fiscal year.

The application for a certificate of registration for a school
located within Ohio shall be accompanied by a surety bond in a penal sum
established by rule of the state board of career colleges and schools pursuant
to Chapter 119. of the Revised Code with conditions and in a form prescribed by
the board with at least one corporate bonding company approved by the
department of insurance as surety thereon. Bond shall be maintained in effect
for a period specified by rule of the board. The board may permit a school to
cancel its bond if the school has been approved to participate in any federal
student financial assistance program authorized under Title IV of the "Higher
Education Act of 1965," 20
U.S.C.A. 1070 et seq., as amended, or if the
school meets standards of financial responsibility otherwise established by the
board. The bond shall provide for the indemnification of any person suffering
prepaid tuition loss as the result of a school closure in accordance with
section 3332.082 of the Revised Code. The
liability of the surety on such bond for the school covered shall not exceed
the sum of the bond as an aggregate for all students for all breaches of the
conditions of the bond by the school. The term of the bond shall be continuous,
but it shall be subject to cancellation by the surety in the manner described
in this section. The bond shall provide blanket coverage for the acts of all
persons engaged as agents of the school without naming them and without regard
to the time they are engaged during the term of the bond. The surety may
terminate the bond upon giving a sixty-day written notice to the principal and
to the state board of career colleges and schools, but the liability of the
surety for acts of the principal and its agents continues during the sixty days
of cancellation notice. The notice does not absolve the surety from liability
which accrues before the cancellation becomes final but which is discovered
after that date and which may have arisen at any time during the term of the
bond. Unless the bond is replaced by that of another surety before the
expiration of the sixty days notice of cancellation, the certificate of
registration shall be suspended. Any person subject to this section required to
file a bond with an application for a certificate of registration may file, in
lieu thereof, cash, a certificate of deposit, letter of credit, or government
bonds in the amount established by the board. The deposit is subject to the
same terms and conditions as are provided for in the surety bond required
herein. Any interest or earnings on such deposits are payable to the depositor.

The student tuition recovery authority is created as a body
corporate and politic of this state. The purpose of the authority is to protect
students of any school registered by the state board of career colleges and
schools from prepaid tuition loss for the academic term due to a school
closure. The authority shall consist of five members as follows: the executive
director of the state board of career colleges and schools, the executive
director of the Ohio association of career colleges and schools, the treasurer
of state or the treasurer of state's designee, the chairperson of the senate
committee that primarily deals with education, and the chairperson of the
committee of the house of representatives that primarily deals with education.
The chairpersons of the legislative committees that primarily deal with
education shall be nonvoting ex officio members. Each voting member of the
authority, before entering upon the member's official duties, shall take an
oath as provided by Section 7 of Article XV, Ohio Constitution. The authority
shall elect one of its voting members as chairperson and another as
vice-chairperson, and shall appoint a secretary-treasurer who need not be a
member of the authority. All meetings of the authority shall be public. All
final actions of the authority shall be journalized and such journal and the
records of the authority shall be open to public inspection at all reasonable
times.

The state board of career colleges and schools may pursue any
lawful means of assuring that students of any school registered by the state
board do not suffer prepaid tuition loss as a result of the closure of a
school. This may include lawsuits against a school or any individual who may
reasonably have liability as a result of the default, in which the attorney
general shall advise and represent the board. Any student seeking reimbursement
for a prepaid tuition loss shall submit a claim for reimbursement to the board
not later than one year following the school's closure. Any reimbursement for a
prepaid tuition loss or advance against a possible prepaid tuition loss of a
student, and any expenses reasonably incurred by the board in its pursuit of
any remedy, shall be paid by the surety on the bond provided by the school
pursuant to section
3332.08 of the Revised Code. If
proceeds from the surety bond are not sufficient to cover such payments, any
additional payments shall be paid from the student tuition recovery fund
created by section
3332.083 of the Revised Code.
Tuition loss does not include moneys held by a school in escrow accounts for
tuition or fees for future terms, as uncommitted grants, loans, or Pell grant
money. If the fund is not of sufficient size to pay the students the full
amount of their prepaid fee, the student tuition recovery authority shall
determine the percentage of the amount that will be paid. Any money recovered
from the defaulting school, or any individual with liability for the default or
from the surety under a bond provided under section
3332.08 of the Revised Code in
excess of any payments made under this section shall be deposited into the
fund.

The student tuition recovery fund is created in the custody of
the treasurer of state, but not as a part of the state treasury. All revenues
received from payments received under section
3332.085 of the Revised Code from
schools registered by the state board of career colleges and schools and any
other sources shall be deposited into the fund. The treasurer of state shall
invest any portion of the fund not needed for immediate use in the same manner
as in the investment of state funds. All investment earnings of the fund shall
be credited to the fund. The treasurer of state shall disburse money from the
fund on order of the chairperson of the student tuition recovery authority or
the chairperson's designee. All moneys and other assets acquired by the
authority shall be held in trust to carry out its powers and duties and shall
be used and reused to provide for the services described in this chapter.

(A)
Adopt bylaws for the regulation of its
affairs and the conduct of its business;

(B)
Maintain a principal office at such place
within the state as is designated by the authority;

(C)
Direct moneys to be paid by the surety on
the bond required by section
3332.08 of the Revised Code and
distribute moneys from the student tuition recovery fund to or on behalf of
students who are determined eligible by the authority;

(D)
Reduce contributions to or utilize excess
money in the fund, as provided in division (C) of section
3332.085 of the Revised Code.

(A)
Not later
than the thirty-first day of August in each year, each school registered by the
state board of career colleges and schools shall pay into the student tuition
recovery fund in the following amounts:

(1)
Schools initially registered or sold on or after July 28, 1989, for the first
five payments $500;

(2)
Any other
school, according to its prior year's tuition receipts: Up to $400,000 $ 200

$400,001 to $700,000 400

$700,001 to $1,000,000 800 Over $1,000,000 1,000 Checks shall
be made payable to the student tuition recovery fund and sent to the executive
director of the state board, who shall promptly forward all such receipts to
the treasurer of state. Failure of a school to make a payment is cause for
cancellation of its certificate of registration.

(B)
The student tuition recovery authority
may impose a special assessment on the schools in an amount up to the amount of
an annual contribution if the draw on the money exceeds the money on hand.

(C)
Once the fund has assets in
excess of liabilities of approximately one million dollars, the authority may:

(1)
Reduce or eliminate the annual
contributions, except on institutions that are required to contribute to the
fund for at least a five-year period. The reduction in contributions to the
fund will be at the discretion of the authority but they will be guided by the
objective to maintain assets in excess of liabilities of approximately one
million dollars.

(2)
Utilize
moneys in excess of the assets required to be maintained in the fund by
division (C)(1) of this section for the purposes of disseminating consumer
information about private career schools and maintaining student records from
closed schools.

The state board of career colleges and schools may limit,
suspend, revoke, or refuse to issue or renew a certificate of registration or
program authorization or may impose a penalty pursuant to section
3332.091 of the Revised Code for
any one or combination of the following causes:

(A)
Violation of any provision of sections
3332.01 to 3332.09 of the Revised
Code, the board's minimum standards, or any rule made by the board;

(B)
Furnishing of false, misleading,
deceptive, altered, or incomplete information or documents to the board;

(C)
The signing of an application
or the holding of a certificate of registration by a person who has pleaded
guilty or has been found guilty of a felony or has pleaded guilty or been found
guilty of a crime involving moral turpitude;

(D)
The signing of an application or the
holding of a certificate of registration by a person who is addicted to the use
of any controlled substance, or who is found to be mentally incompetent;

(E)
Violation of any commitment
made in an application for a certificate of registration or program
authorization;

(F)
Presenting to
prospective students, either at the time of solicitation or enrollment, or
through advertising, mail circulars, or phone solicitation, misleading,
deceptive, false, or fraudulent information relating to any program, employment
opportunity, or opportunities for enrollment in accredited institutions of
higher education after entering or completing programs offered by the holder of
a certificate of registration;

(G)
Failure to provide or maintain premises or equipment for offering programs in a
safe and sanitary condition;

(H)
Refusal by an agent to display the agent's permit upon demand of a prospective
student or other interested person;

(I)
Failure to maintain financial resources
adequate for the satisfactory conduct of programs as presented in the plan of
operation or to retain a sufficient number and qualified staff of instruction,
except that nothing in this chapter requires an instructor to be licensed by
the state board of education or to hold any type of post-high school degree;

(J)
Offering training or programs
other than those presented in the application, except that schools may offer
special courses adapted to the needs of individual students when the special
courses are in the subject field specified in the application;

(K)
Discrimination in the acceptance of
students upon the basis of race, color, religion, sex, or national origin;

(L)
Accepting the services of an
agent not holding a valid permit issued under section
3332.10 or
3332.11 of the Revised Code;

(M)
The use of monetary or other
valuable consideration by the school's agents or representatives to induce
prospective students to enroll in the school, or the practice of awarding
monetary or other valuable considerations without board approval to students in
exchange for procuring the enrollment of others;

(N)
Failure to provide at the request of the
board, any information, records, or files pertaining to the operation of the
school or recruitment and enrollment of students. If the board modifies or
adopts additional minimum standards or rules pursuant to section
3332.031 of the Revised Code, all
schools and agents shall have sixty days from the effective date of the
modifications or additional standards or rules to comply with such
modifications or additions.

(1)
Any
person adversely affected by the actions of a certificate holder may file a
complaint with the state board of career colleges and schools alleging that any
school registered with the board has violated any provision of section
3332.09 of the Revised Code. The
complaint shall be in writing and signed by the complainant and shall be filed
with the board within six months after the violations allegedly were committed.
Upon receiving a complaint, the board shall initiate a preliminary
investigation to determine whether it is probable that violations were
committed. If the board determines after preliminary investigation that it is
not probable that any violations were committed, it shall notify the person who
filed the complaint that it has so determined and that it will not issue a
formal complaint in the matter. If the board determines after a preliminary
investigation that it is probable that violations were committed, it may issue
a formal complaint under division (A)(2) of this section or it may endeavor to
eliminate such practices by informal methods of conference, conciliation, and
persuasion. Nothing said or done during these endeavors shall be disclosed by
any member of the board or its staff or be used as evidence in any subsequent
proceedings. If, after such investigation and conference, the board is
satisfied that such violations will be eliminated, it may treat the complaint
as conciliated, and entry of such disposition shall be made in the records of
the board.

(2)
If as a result of
any informal methods utilized under division (A)(1) of this section, the board
fails to effect the elimination of violations or fails to obtain voluntary
compliance with this chapter, the board shall issue a formal complaint to the
holder of a certificate of registration of the school under investigation. The
formal complaint shall state the charges against the school and grant the
certificate holder the opportunity to appear before the board at a public
hearing pursuant to Chapter 119. of the Revised Code. The board shall hold the
public hearing not sooner than thirty days after issuance of the formal
complaint. Any formal complaint issued pursuant to this section must be issued
within one year after the state board's receipt of a complaint from a person
adversely affected by the actions of a certificate holder. If at the time of
issuing a formal complaint, the board has reasonable cause to believe that the
violations that are the subject of the complaint will continue and constitute
an immediate threat to the welfare of current and prospective students, the
board, for a period not to exceed the lesser of ninety days or the period of
time until a final adjudication order dismissing the complaint or imposing a
penalty is issued under this section, may:

(a)
Issue an order prohibiting the school's
agents from personally contacting students;

(b)
Issue an order prohibiting the school
from using any advertising, recruiting, or promotional materials unless such
materials have been approved by the board. The board must approve or disapprove
any materials submitted to it under such an order within thirty days of their
receipt.

(c)
Issue an order
prohibiting the operation of a school. If, after a public hearing, the board
determines that the holder of a certificate of registration has violated any
provision of section
3332.09 of the Revised Code, the
board shall issue a final adjudication order levying a civil penalty pursuant
to division (B) of this section or limiting, suspending, or revoking the
certificate of registration or program authorization or any combination
thereof. The board may impose additional penalties including but not
necessarily limited to curtailment of advertising, and discontinuation of
enrollment of students in specific programs. Upon suspension or revocation, the
board immediately shall also issue an order pursuant to Chapter 119. of the
Revised Code requiring such person immediately to cease all sales, advertising,
and enrollment activities.

(B)
Pursuant to division (A) of this section,
the board may impose a civil penalty of not less than one thousand nor more
than three thousand five hundred dollars for each violation of section
3332.09 of the Revised Code, but
not to exceed an aggregate penalty of thirty-five thousand dollars in any
six-month period.

(C)
The board
shall prepare an annual report that documents the disposition of all
complaints, their status, board action, and the elapsed time from the initial
filing of the complaint until final resolution. The report shall be made
available to anyone upon request.

(D)
The board may, upon its own initiative
and independent of the filing of any complaints, conduct a preliminary
investigation relating to any possible violations of section
3332.09 of the Revised Code. At
any time while a school is in session, the board or its designee may conduct
on-site inspections and reviews of a school and its courses of instruction. The
board shall conduct such visits and reviews, including visits without prior
notice to the schools, as necessary to ensure compliance with this chapter. All
books, records, and files of a school shall be open for inspection by the
board, its designees, or staff during on-site inspections, or whenever
requested by the board for the purpose of ensuring compliance with the
provisions of this chapter. For the purpose of conducting any investigation,
inspection, or review, the board may administer oaths, take the testimony of
any person under oath, issue subpoenas, compel the attendance of witnesses, or
require the production for examination of any books and papers relating to any
matter under investigation or in question before the board.

(E)
During the course of any investigation
under division (A) or (D) of this section, the board shall refer all possible
violations of Chapter 1345. of the Revised Code to the attorney general.

Any school subject to this chapter receiving money under
section 3333.12 or
3333.122 of the Revised Code on
behalf of a student who is determined by the state board of career colleges and
schools to be ineligible under such section because the program in which the
student is enrolled does not lead to an associate or baccalaureate degree,
shall be liable to the state for the amount specified in section
3333.12 or
3333.122 of the Revised Code. The
state board of career colleges and schools shall suspend the certificate of
registration of a school receiving money under section
3333.12 or
3333.122 of the Revised Code for
such ineligible student until such time as the money is repaid to the Ohio
board of regents.

(A)
No individual shall sell any program or solicit students therefor in this state
unless the individual is an employee of the school. Any individual whose
primary duty, whether on or off school premises, is to solicit prospective
students shall first secure a permit as an agent from the state board of career
colleges and schools. If the agent represents more than one school, a separate
permit shall be obtained for each school represented by the agent. An agent who
represents a person that operates more than one school in the same geographical
area, as determined by the board, need not obtain a separate permit for each
such school. Upon approval for a permit, the board shall issue a pocket card to
the individual, giving the individual's name, address, permit number, and the
name and address of the employing school, and certifying that the individual
whose name appears on the card is an authorized agent of the school.

(B)
The application for a permit shall be made on forms to be furnished by the
board and accompanied by the fee established in accordance with section
3332.07 of the Revised Code. A
permit shall be granted for a period not to exceed twenty-four
months and shall be valid for up to thirty days after its expiration date. An
application for a renewal permit shall be accompanied by the fee established in
accordance with section
3332.07 of the Revised
Code.

(C)
Each
school subject to this chapter shall assume full responsibility for the
actions, statements, and conduct of its agents, and shall provide them with
adequate training and arrange for proper supervision of their work. The board
shall hold schools liable for the actions, statements, and conduct of agents
that violate any provision of this chapter, unless an agent's acts or omissions
were manifestly outside the scope of the agent's employment or official
responsibilities.

Any agent's permit applied for pursuant to section
3332.10 of the Revised Code shall
be granted or denied within thirty days of the receipt of the application by
the state board of career colleges and schools. If the board has not completed
its determination with respect to the issuance of a permit within such
thirty-day period, it shall issue a temporary permit to the applicant, which
permit is sufficient to meet the requirements of section
3332.10 of the Revised Code until
such time as such determination is made. No permit shall be issued to any
person found by the board not to be of good moral character.

Any agent's permit issued may be suspended or revoked by the
state board of career colleges and schools if the holder of the permit solicits
or enrolls students through fraud, deception, or misrepresentation, upon a
finding that the permit holder has violated any provision enumerated in
division (A), (B), (F), (H), (J), (K), or (M) of section
3332.09 of the Revised Code, or
upon finding that the permit holder is not of good moral character. Upon
receipt of any written complaint from any person, the board shall conduct a
preliminary investigation. If after such investigation or if as a result of any
investigation conducted under division (A) or (D) of section
3332.091 of the Revised Code, the
board determines it is probable violations were committed, the board shall hold
informal conferences in the same manner as provided in section
3332.091 of the Revised Code with
an agent believed to be in violation of one or more of the above conditions. If
after sixty days these conferences fail to eliminate the agent's objectionable
practices or procedures, the board shall issue a formal complaint to the agent
and the school that employs the agent. The formal complaint shall state the
charges against the agent and the holder of the certificate of registration of
the school and shall require them to appear before the board at a public
hearing pursuant to Chapter 119. of the Revised Code. If, after the public
hearing, the board determines that an agent has violated one or more of the
provisions described above, the board shall suspend or revoke the agent's
permit. If after such hearing the board also determines that the school at
which the agent was employed was negligent in its supervision of the agent or
encouraged or caused the commission of the violations, the board shall levy
penalties against such school in accordance with division (A) of section
3332.091 of the Revised Code.
Nothing said or done in the informal conferences shall be disclosed by the
board or any member of its staff nor be used as evidence in any subsequent
proceedings.

The fact that a bond is in force pursuant to section
3332.08 of the Revised Code does
not limit nor impair any right of recovery otherwise available pursuant to law,
nor is the amount of such bond relevant in determining the amount of damages or
other relief to which any plaintiff may be entitled.

No recovery shall be had on any contract for or in connection
with a program by any person selling or administering such program if the agent
of such person was not the holder of an agent's permit as required by section
3332.10 of the Revised Code at the
time he negotiated the contract for or sold the program.

The issuance of a permit pursuant to sections
3332.10 and
3332.11 of the Revised Code does
not constitute approval of any program or the person offering, conducting, or
otherwise administering the program, unless such person holds the certificate
of registration and appropriate program authorization required by section
3332.05 of the Revised Code. Any
representation contrary to this section or tending to imply that a permit
issued pursuant to sections
3332.10 and
3332.11 of the Revised Code
constitutes such approval is misrepresentation within the meaning of this
chapter.

Consumer transactions entered into with schools subject to this
chapter are subject to Chapter 1345. of the Revised Code. As used in this
section, "consumer transaction" has the same meaning as in section
1345.01 of the Revised Code.

On receipt of a notice pursuant to section
3123.43 of the Revised Code, the
state board of career colleges and schools shall comply with sections
3123.41 to
3123.50 of the Revised Code and
any applicable rules adopted under section
3123.63 of the Revised Code with
respect to a permit issued pursuant to this chapter.

As used in this section, "active duty" means full-time duty in
the active military service of the United States, including full-time training
duty, annual training duty, and active state duty for members of the national
guard.

(A)
Each institution that
holds a certificate of registration from the state board of career colleges and
schools under this chapter shall grant a student a military leave of absence
from the institution while the student is serving on active duty, and for one
year after the conclusion of that service, if the student is a member of the
United States national guard or other reserve component of the armed forces of
the United States, or a member of those armed forces in a retired status, and
is called to active duty. The student shall not suffer an academic penalty as a
result of the leave of absence.

(B)
If requested by a student granted a
military leave of absence pursuant to division (A) of this section not later
than one year after the student's release from active duty, the institution in
which the student is enrolled shall do either of the following, as elected by
the student:

(1)
Credit tuition and fee
charges toward a subsequent academic term in an amount that is one hundred per
cent of what the student paid the institution for the academic term in which
the student withdraws;

(2)
Refund
tuition and fees paid for the academic term, provided the student withdraws
before the withdraw date established by the institution. The refund shall equal
one hundred per cent of the tuition and fee charges the student paid the
institution for the academic term. If the student withdraws after the withdraw
date established by the institution, the student is ineligible for a refund of
tuition and fee charges. For the purposes of this section, the "withdraw date"
shall be the same as the date set by the institution for its general student
population to withdraw from the institution or a course or class without
academic penalty.

(C)
If requested by a student granted a military leave of absence pursuant to
division (A) of this section not later than one year after the student's
release from active duty, the institution shall restore the student to the
educational status the student had attained prior to being called to active
duty without loss of academic credits earned, scholarships or grants awarded,
or tuition and other fees paid prior to the commencement of active duty, except
as provided in division (B) of this section.

(D)
If an institution fails to comply with
this section, the student may bring an action against the institution to
enforce its provisions in the court of common pleas of the county in which the
student resides. If the student resides outside of this state, the action shall
be brought in the court of common pleas of the county in which the campus of
the institution previously attended by the student is located. The court may
award reasonable attorney's fees and expenses if the student prevails in the
action.

(1)
"On-campus student
housing" means a dormitory or other student residence that is owned or operated
by or located on the campus of a school subject to this chapter.

(2)
"Parent" means either parent, except that
if one parent has sole custody, "parent" means the parent with custody.
"Parent" also includes a guardian or, in the absence of a parent or guardian,
another person who has accepted responsibility for the care of the student.

(B)
Beginning with the
academic year that commences on or after July 1, 2005, a school subject to this
chapter shall not permit a student to reside in on-campus student housing
unless the student, or, if the student is younger than eighteen years of age,
the student's parent, discloses to the school whether the student has been
vaccinated against meningococcal meningitis and hepatitis B by submitting to
the school the meningitis and hepatitis B vaccination status statement
described in division (B) of section
3701.133 of the Revised Code or a
meningitis status statement form provided by the school that meets the
requirements of division (B) of section
3701.133 of the Revised Code. The
statement may be submitted in written form or, if the school has a secure web
site, in electronic form.

(C)
On
receipt of an application for residence in on-campus student housing, a school
subject to this chapter shall do both of the following:

(2)
Provide the
student in either written or, if the school has a secure web site, electronic
form the meningitis and hepatitis B vaccination status statement described in
division (B) of section
3701.133 of the Revised Code or a
meningitis status statement form provided by the school that meets the
requirements of division (B) of section
3701.133 of the Revised Code.

(D)
This section does
not require a school to provide or pay for a meningococcal meningitis or
hepatitis B vaccination for any student.

Whoever violates division (A) of section
3332.06 or division (A) of section
3332.10 of the Revised Code shall
be fined not more than five hundred dollars or imprisoned not more than ninety
days, or both.